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Rate of Tax for Works Contact

V Vinodkumar (Proprietor) (230 Points)

14 January 2019

KRIDL is registered as a Public sec
tor undertaking (Body Corporate) and cauvery Niravari Nigam LTD is registered under Government department status and both of them are deducting GST 2% to us. Now I want to raise GST invoices for both. weather 12% is applicable for both the parties or 18% for KRIDL and 12% for cauvery Niravari Nigam ltd. please anybody give me the correct clarification.

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Ravi SADhiyan (Practice) (4510 Points)
Replied 14 January 2019

Originally posted by : V Vinodkumar
	KRIDL is registered as a Public sector undertaking (Body Corporate) and cauvery Niravari Nigam LTD is registered under Government department status and both of them are deducting GST 2% to us. Now I want to raise GST invoices for both. weather 12% is applicable for both the parties or 18% for KRIDL and 12% for cauvery Niravari Nigam ltd. please anybody give me the correct clarification.

If Both Party give Certificate related to Government Entity as per GST

Than apply 12 % in his Bill

Otherwise charge 18 %

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V Vinodkumar (Proprietor) (230 Points)
Replied 14 January 2019

what is the difference between government entity and public sector undertaking

Ravi SADhiyan (Practice) (4510 Points)
Replied 14 January 2019

Originally posted by : V Vinodkumar
	what is the difference between government entity and public sector undertaking

A) Govt Entity Means an autority or board

i) set up Parliament or State Legislature

ii) established by any Govt

with 90 or more participation by way equity or control

B) PSU means

State or Central or Both ownership 51 % or More

V Vinodkumar (Proprietor) (230 Points)
Replied 14 January 2019

thank you but GST should be deducted by govt department only but being a public sector undertaking KRIDL is also deducting. That's why I thought of collecting GST at 12% from them which is correct or not.

shailendra shukla (Bhopal) (1741 Points)
Replied 14 January 2019

As per Section 51 of the CGST Act, 2017

A department or an establishment of the Central Government or State Government; or

Local authority; or

Governmental agencies; or

Such persons or category of persons as may be notified by the Government.

As per the latest Notification dated 13th September 2018, the following entities also need to deduct TDS-

An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government.

A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.

Public sector undertakings